The FBI and the US Attorneys Office for the Northern District of New York have launched a formal criminal investigation into New York Attorney General Letitia James for alleged mortgage fraud.
The case stems from a criminal referral issued last month by Federal Housing Finance Agency Director William Pulte. The referral alleges that James may have falsified property records and misled lenders to receive government-backed loans and other favorable mortgage terms.
James has denied wrongdoing and called the investigation politically motivated, pointing to her office’s civil fraud case against Trump. That case ultimately resulted in a $354 million judgment against the president, which also bars his
During her 2018 campaign for attorney general, James publicly stated she intended to pursue legal action against Trump and investigate his business dealings in New York.
While campaigning, James vowed to shine a “bright light into every corner” of Trump’s “real estate dealings.” Her critics — including Trump himself — would later argue that her civil lawsuit against him was a political witch hunt.
In announcing the probe, US Attorney John A. Sarcone III took a swipe at James’s 2018 campaign rhetoric about investigating President Donald Trump.
The US attorney said James “unethically ran around the state campaigning on getting Donald Trump,” and essentially accused her of finding a criminal target without an alleged crime.
He added:
We stand prepared to act in the capacity that we need to when and if we are informed there’s a charge to be made. Unlike Letitia James, who unethically ran around the state campaigning on getting Donald Trump… my office conducts itself in a manner that is proper and professional.
Two weeks ago, James’ attorney, Abbe Lowell, wrote a letter to Bondi, stating, “I write to address the latest act of improper political retribution—this time directed at Ms. James—publicly instigated and endorsed by President Trump…. This so-called ‘Criminal Referral,’ which recycles long-disproven allegations and is ‘[b]ased on media reports’ lacks any credible foundation.”
“Mr. Trump has singled out Attorney General James dating back to her campaign in 2018, and ever more so during and after the trial and verdict in New York in which Mr. Trump and the Trump Organization were found liable for financial fraud and assessed a $454 million judgment,” Lowell claimed.
Lowell referred to what he called “baseless allegations,” saying:
Director Pulte cherry-picked an August 17, 2023 power of attorney that mistakenly stated the property to be Ms. James’ principal residence and at the same time absolutely ignored her very clear and all caps statement two weeks earlier to the mortgage loan broker that “[t]his property WILL NOT be my primary residence[.] It will be Shamice’s primary residence.”
In 1983, James, then a recent college graduate, bought a Queens residence with her father, with some documents listing her as his “wife.’
“He asked his daughter (then a few years out of school) to help by allowing him to add her name to the mortgage application,” Lowell argued. “Mr. James filled out the mortgage material (wherein he described their relationship as being ‘spouses’) and purchased the home without his daughter’s involvement.”
“However, James, then 24 and a college graduate, signed the notarized mortgage, along with her father, on one of the document’s three pages that listed her as his ‘wife,’” the Times-Union reported. “One of those references to her being her father’s ‘wife’ was just below her signature. Lending experts consulted by the Times Union said that by listing themselves as husband and wife, the pair may have qualified for a loan — or received better borrowing terms — than had they not been considered a couple due to income requirements.”
Dan Abrams, who founded Mediaite, said after Pulte’
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